Hyderabad records sharp increase in unsold residential units

In terms of year-on-year (YoY) price appreciation, the Hyderabad real estate market experienced a notable uptick. The report indicates an impressive performance, with 34 per cent of projects witnessing an appreciation above 10 per cent on a YoY basis.

Hyderabad: In the third quarter of 2023, a notable surge in unsold residential units has been observed in the Hyderabad real estate market, as per the recent joint report by the Confederation of Real Estate Developers’ Associations of India (CREDAI) and Liases Foras.

The city currently hosts 523 marketable projects led by 308 active builders. Despite the considerable demand, the annual sales of residential units amounted to 36,893, with a total sales value of Rs 54,690 crores. However, the new supply of units reached 50,267, resulting in a significant accumulation of 72,254 unsold units.

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A critical metric indicating market health is the apartment carpet rates, which presently stand at Rs 11,465 per square foot. A concerning trend highlighted in the report is the sharp increase in unsold units in Hyderabad. The months of inventory, a key indicator measuring the time required to sell the existing inventory, showed a decrease from 25 in June 2023 to 22 by September 2023.

In terms of year-on-year (YoY) price appreciation, the Hyderabad real estate market experienced a notable uptick. The report indicates an impressive performance, with 34 per cent of projects witnessing an appreciation above 10 per cent on a YoY basis.

The report also notes that Pan India’s gross unsold inventory stands at 10.42 lakh units, showing a 3 per cent decline on a quarter-on-quarter (QoQ) basis but a 2 per cent increase on a YoY basis. Approximately 26 per cent of the total stock is stalled or has stopped booking, with the supply distribution on launch year revealing that most stalled projects were initiated before 2016.

The report states that Mumbai Metropolitan Region holds the largest residential market share, accounting for 22 per cent of the unsold stock.